Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Another name for a Builders Risk Policy is known as what?

1. Project Safety Policy

2. Valuable Structure Insurance

3. Course of Construction policy

4. Property Development Coverage

The correct answer is: Course of Construction policy

A Builders Risk Policy is commonly referred to as a Course of Construction policy. This type of insurance is specifically designed to cover buildings and structures that are in the process of being constructed or renovated. The coverage applies during the construction phase, protecting against various risks such as damage from fire, theft, vandalism, and certain weather-related events. The term "Course of Construction" highlights that the policy is intended to cover the construction process itself, distinguishing it from standard property insurance that applies to completed structures. It’s essential for contractors, builders, and property owners to secure this type of policy to mitigate potential financial losses that can arise during building projects. Other options, while they may indicate some form of coverage or insurance, do not accurately reflect the industry-standard terminology used for policies specifically targeted at the construction phase of a project.